Dorita Yiannakou
“During the first year, we simply kept quiet and worked,” the Municipality of Nicosia said as it presented its two-year progress report, highlighting significant steps in financial recovery, organisational restructuring, and the development course of the capital.
The Municipality of Nicosia, which employs 690 staff, has been facing major financial challenges, obligations and pending issues inherited from local government reform, Mayor Charalambos Prountzos said. According to data presented at a press conference, the municipality’s revenues for 2026 stand at €69 million, while expenditures reach €73 million. Annual payroll costs amount to €24.9 million, while a further €3.4 million is spent on road maintenance, street lighting and traffic lights.
At the same time, it was noted that state funding amounts to €22 million, while the municipality’s minimum needs are estimated at €35 million. “We kept the municipality standing and achieved a mini financial miracle,” he said.
Deficit reduction and broader tax base
A key achievement was the reduction of the deficit by 80%, attributed to the termination of subsidies, cuts in non-productive spending, and the abolition of 40 positions. At the same time, the municipality expanded its tax base, with a 10% increase in taxpayers in residential properties and a 5% increase in commercial properties.
Administrative integration of services is also progressing, while the completion rate of citizen requests reached 77% over the two-year period, which the municipality attributes to a new operational culture it is trying to establish.
Particular emphasis was placed on modernising services through digitalisation, the introduction of a participation card, and the creation of a new Municipal Youth Council. “We put the citizen at the centre,” Prountzos stressed, referring both to social policy and efforts to rationalise municipal spending. He also noted an ongoing campaign to address unacceptable living conditions of citizens residing in unsafe buildings.
International profile
The municipality also reported positive results in the absorption of EU funds, while highlighting events held during Cyprus’ EU Presidency, including 51 meetings, 10 ministerial conferences, and more than 5,300 delegates.
Another milestone was the creation of the energy community “Lefkothea,” which includes more than 40 businesses and citizens aiming to reduce energy costs and environmental impact.
The Mayor also referred to increased investment activity in Nicosia, with new technology companies setting up in the city, including India’s LTIMindtree. The establishment of a Business Council, rising investments, new jobs, and residential developments were cited as evidence of the capital’s growing momentum.
Traffic congestion needs decisions
On traffic congestion, the Mayor said specific proposals have already been submitted to the state, stressing that political decisions and project prioritisation are now required for effective solutions. “We cannot continue to bury our heads in the sand over traffic. The proposals exist and the necessary decisions must be taken,” he said.
On 2 July, the Municipal Council is expected to review bids for the commercial development of the old GSP stadium area, a project seen as crucial for the future of the district.
Faneromeni, universities, exhibitions and SOPAZ
Special reference was made to the Faneromeni project, which has been restarted after years of stagnation. A Cabinet decision has already been taken for the municipality to assume management of the site, followed by public consultation and an architectural competition.
At the same time, six university faculties are expected to launch programmes in Nicosia within the next three years, with around 1,000 students expected from the University of Athens alone.
Development plans also focus on the SOPAZ area, where an innovation zone is being pursued with investments estimated to exceed €500 million. The project, which requires Cabinet approval, is expected to transform eastern Nicosia through new land uses and strategic developments, the Mayor said.
Regarding the creation of a metropolitan park on the site of the State Fair, Prountzos said there is consensus among stakeholders, pending Cabinet approval, with the municipality acting as manager. He added there is political will, as confirmed by President Nikos Christodoulides.
GSP and delays in the Citizens Service Centre
The Municipal Council will meet on 2 July to examine bids submitted for the commercial use of the old GSP site. Planned uses include hotels, restaurants, retail shops, cafés, canteens and catering services. The contract will last 10 years, with a single operator model intended to ensure a unified commercial identity for the area. The project will be delivered as a “cold shell,” allowing tenants to design interiors.
The Citizens Service Centre planned for the GSP square is expected to be ready in 2027 and will be located at the amphitheatre square. The original target was end of 2026, but delays occurred at the electromechanical study stage, which was assigned to a private company following a tender process.
